Community Heritage Financial, Inc. Completes $12.1 Million Subordinated Debt Offering
Community Heritage Financial (CMHF) has completed a private offering of $12.1 million in 6.75% Fixed-to-Floating Rate Subordinated Notes due 2034. The company used these proceeds, along with internal funds, to fully redeem its existing $15.0 million 5.75% Fixed-to-Floating Notes due 2029. The new Notes will maintain a 6.75% fixed interest rate until October 30, 2029, after which they will transition to a floating rate of three-month SOFR plus 300 basis points. The Notes qualify as Tier 2 capital and are redeemable at the company's option after October 30, 2029.
Community Heritage Financial (CMHF) ha completato un'offerta privata di 12,1 milioni di dollari in Note Subordinate a Tasso Fisso-Variabile del 6,75% con scadenza nel 2034. L'azienda ha utilizzato questi proventi, insieme a fondi interni, per ripagare completamente le sue attuali 15,0 milioni di dollari in Note Fisse-Variabili al 5,75% con scadenza nel 2029. Le nuove Note manterranno un tasso d'interesse fisso del 6,75% fino al 30 ottobre 2029, dopodiché passeranno a un tasso variabile pari a SOFR per tre mesi più 300 punti base. Le Note si qualificano come capitale di livello 2 e sono riscattabili a discrezione dell'azienda dopo il 30 ottobre 2029.
Community Heritage Financial (CMHF) ha completado una oferta privada de $12.1 millones en Notas Subordinadas a Tasa Fija-Flotante del 6.75% con vencimiento en 2034. La compañía utilizó estos fondos, junto con recursos internos, para redimir completamente sus actuales $15.0 millones en Notas Fijas-Flotantes del 5.75% que vencen en 2029. Las nuevas Notas mantendrán una tasa de interés fija del 6.75% hasta el 30 de octubre de 2029, después de lo cual pasarán a una tasa flotante de SOFR a tres meses más 300 puntos base. Las Notas califican como capital de nivel 2 y son redimibles a opción de la empresa después del 30 de octubre de 2029.
Community Heritage Financial (CMHF)는 2034년 만기 6.75% 고정-변동 금리 후순위 채권에 대해 1210만 달러의 사모 발행을 완료했습니다. 회사는 이 수익금과 내부 자금을 사용하여 기존 1500만 달러의 5.75% 고정-변동 채권을 2029년 만기 이전에 전액 상환했습니다. 새 채권은 2029년 10월 30일 까지 6.75% 고정 금리를 유지하며, 그 이후에는 3개월 SOFR에 300 베이시스 포인트를 더한 변동 금리로 전환됩니다. 이 채권은 2등급 자본으로 인정되며, 2029년 10월 30일 이후 회사의 선택에 따라 상환할 수 있습니다.
Community Heritage Financial (CMHF) a achevé une offre privée de 12,1 millions de dollars en Obligations Subordonnées à Taux Fixe-Variable de 6,75% arrivant à échéance en 2034. L'entreprise a utilisé ces fonds, ainsi que des fonds internes, pour racheter intégralement ses Obligations Fixes-Variables existantes de 15,0 millions de dollars à 5,75%, arrivant à échéance en 2029. Les nouvelles Obligations conserveront un taux d'intérêt fixe de 6,75% jusqu'au 30 octobre 2029, après quoi elles passeront à un taux variable de SOFR de trois mois plus 300 points de base. Les Obligations sont considérées comme du capital de niveau 2 et peuvent être rachetées à l'initiative de l'entreprise après le 30 octobre 2029.
Community Heritage Financial (CMHF) hat ein privates Angebot über 12,1 Millionen Dollar in nachrangigen Anleihen mit festem und variablem Zinssatz von 6,75 % mit Fälligkeit im Jahr 2034 abgeschlossen. Das Unternehmen nutzte diese Erlöse zusammen mit internen Mitteln, um seine bestehenden 15,0 Millionen Dollar an Anleihen mit festem und variablem Zinssatz von 5,75 % mit Fälligkeit im Jahr 2029 vollständig einzulösen. Die neuen Anleihen werden bis zum 30. Oktober 2029 einen festen Zinssatz von 6,75 % beibehalten, danach wechseln sie zu einem variablen Zinssatz von drei Monaten SOFR plus 300 Basispunkte. Die Anleihen qualifizieren sich als Tier-2-Kapital und können nach dem 30. Oktober 2029 nach Ermessen des Unternehmens eingelöst werden.
- Lower future cost of capital through redemption of existing debt
- Successfully raised $12.1 million through private offering
- Notes qualify as Tier 2 capital for regulatory purposes
- Required additional internal funds beyond the $12.1M raised to redeem $15M existing debt
"We are pleased to announce the successful completion of our private, in-market subordinated debt offering. The capital raised provided Community Heritage Financial, Inc. the ability to lower its future cost of capital with the redemption of existing subordinated debt. We are also grateful for the confidence shown and support provided by members of our community who participated in the offering," said Robert "BJ" Goetz, Jr., President and Chief Executive Officer of the Company.
The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes. The Notes will initially bear interest at a rate of
The offer and sale of the Notes has not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC served as legal counsel to the Company.
About Community Heritage Financial, Inc.
Community Heritage Financial, Inc. is the parent company of Middletown Valley Bank (the "Bank"). Middletown Valley Bank provides personal and business banking services, as well as mortgage lending services through its wholly owned subsidiary, Millennium Financial Services, Inc. (Mlend). Originating in
Community Heritage Financial, Inc.
Robert E. (BJ) Goetz, Jr.
President & Chief Executive Officer
301-371-3055
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SOURCE Community Heritage Financial, Inc.
FAQ
What is the interest rate on CMHF's new subordinated notes issued in October 2024?
How much did Community Heritage Financial (CMHF) raise in its 2024 subordinated debt offering?
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